Is there a better way to pay radio sales executives?

Gregg Murray, iRadioSales | Radio Sales Blog

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I am getting anxious about radio sales. Not because of the medium – its strengths of mobility and audience demographics are undeniable. But, there seems to be a growing problem of managers being able to find quality AE’s that are great sellers and great ambassadors for the radio industry.

An area of concern seems to be what young professionals (25-35) are being offered to start a career in radio sales. In the part of the country where I live and have been a DOS (market 170′ish), starting salaries are around 20k. With commissions, a solid seller will make in the 30′s their first year (in the 40′s if they are very good). Sure, a great seller, even in my region, can build their list and make six-figures eventually. But, it seems it’s getting more and more difficult to find quality that is willing to make that sacrifice to get there.

I’ve spoken with several young professionals who have been very open about radio sales as a career. They have said, “why would I take a job like that (stressful & outside sales) in the 30′s, when I can get a non-sales job (in an agency for instance) for the same money.” And if they really want to get into sales, the quality sellers want to get into something where they can make into the 50-80k range (ie: pharmaceuticals) out of the box. They’re not so worried about the potential 100k in five-years, they want the 50k now.

What’s the answer? Is it to pay more up front for potential great sellers? Look at a sports team — they have to pay up front for talent. In most cases (not all, but most), a sports team will pay big for a couple stars, and surround them with the proper support/role players. I know with sales you “pay your own salary.” But, great players don’t sign contracts when all (or half) their income is based on performance up front. They get offered what they (and their employers) feel they will be worth, and then are expected to perform at that level.

If you’re considering a career in radio sales and you know you have the right stuff, what kind of money do you think you should make? How would you want to be fairly paid? If you’re a manager, what are your thoughts? We know there’s a problem…what’s your out-of-the-box possible solution?

I also wonder if anyone out there is changing the dynamics of a radio sales organization? Has anyone out there payed a few great players larger salaries, and then surround them with an assistant-based support staff?

Click the comments link below and share your thoughts.

{ 9 comments… read them below or add one }

Chip VanAlsburg May 20, 2008 at 12:52 am

Even more operators are moving to a commission only pay structure. If you’re looking to begin a career in media sales and are good enough to get hired in radio, tv or cable which one do you choose? Whoever offers enough security or base pay so that you can at least pay your student loan, car payment, credit card bill and your happy hour tab?

BB Hainsworth May 20, 2008 at 6:57 am

Pay peanuts you get monkeys. What is amazing about managers is that they only think of getting a body in the seat. For the most part if they are replacing a senior rep, they think small and hire two reps to replace the one. Thats another story. Bottom line, whats it costing you to have someone only making 20K a year??And if thats all you are paying, what is the turnover?

BB
yada3times.blogspot.com

Buffy October 7, 2008 at 7:36 am

A based salary in the 20K region sounds good to me. I am an Account Representative for a Radio station in Ohio and my yearly salry, just salary is $12,000 before my commission. Believe me, a salary in the 20′s would be great. That will never happen here. This is a very small town and my manager thinks I can sell the mountain here. I do not get near enough gas compensation to cover what I pay out. But I love my job and there isn’t much opportunity in this small town for careers.

Dan Folkerts January 26, 2009 at 3:31 pm

I have been in mortgage loan sales the past few years, but I am interviewing for a position as Account Manager this week with the largest air waves radio station in the St. Louis region. Besides putting down some in writing, new clients I could possibly bring to do advertising with them, also marketing stratagy’s. What else can I do to win them over and have them wanting to hire me.

Thank you,
Dan Folkerts

Aly March 22, 2009 at 6:38 pm

I’ve recently been offered a sales rep job with a local radio station with a base salary of $20k yrly plus $200 mthly for gas. This will be my 1st time in sales and have a paralegal background. Any suggestions from the pros?

Mark July 8, 2009 at 12:11 pm

I haven’t heard anyone discuss commission. How much can you expect to earn per 30 second spot? Add that to base pay to see what you can really earn.

kostenlos downloaden July 18, 2009 at 8:44 pm

Great idea, thanks for this tip!

hypnotyzing1 March 1, 2010 at 2:12 pm

Question – does anyone know the average commission for radio sales? We are paid draw and 15% commission on sales. Is this average. I am in the Chicago market. Thank you in advance for any information you can provide.

Gregg Murray March 1, 2010 at 2:17 pm

Hi there Chicago. Though I’m not familiar with the Chicago market, that sounds exactly what I have seen as “the norm” from other markets around the country.

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